The CEO of popular fintech firm Ripple, which is closely linked to the $XRP token, has recently revealed he is “not convinced” that the meme-inspired cryptocurrency Dogecoin ($DOGE) is good for the cryptocurrency space.
Speaking at a panel discussion at the Fintech Abu Dhabi event, as CNBC reports, Garlinghouse said:
I’m actually not convinced, somewhat controversially I guess, that dogecoin is good for the crypto market. Dogecoin has some inflationary dynamics itself that would make me reluctant to hold it
Dogecoin was created back in 2013 as a joke. The cryptocurrency’s community is well-known for taking on philanthropic projects, which included helping charitable organizations. It made headlines in 2014 after raising more than $25,000 worth of DOGE to let the Jamaican bobsleigh team attend the Winter Olympics in Sochi.
Dogecoin, as CryptoGlobe reported, saw search interest for it explode during a massive 10,000% price rally it saw earlier this year. Searches for $DOGE skyrocketed from an average of 135,000 monthly searches in April 2020 to 16.5 million in April 2021.
DOGE is now the tenth-largest cryptoasset by market capitalization with nearly $30 billion. Garlinghouse pointed out that it was “built as a joke” and ended up gaining momentum “from some high-profile people like Elon Musk.”
The cryptocurrency has no hard supply limit. When it was launched in 2013 it had a supply cap of 100 billion coins, which was hit in mid-2015. Since then, DOGE switched to an uncapped supply with rewards per block being limited to 10,000 tokens to control its inflation.
Its price started surging after a parody account on Twitter going by WSB Chairman asked whether DOGE had ever traded at $1. Other users piled on the movement, taking advantage of momentum gained from the WallStreetBets subreddit battling hedge funds over the price of GameStop’s shares.
A lot of DOGE’s success came from tweets from celebrities like Tesla CEO Elon Musk. Musk has been supporting the meme-inspired cryptocurrency over the last few months, even contributing to its development.
During the panel, Garlinghouse said rising inflation has accelerated interest in cryptocurrencies and made bitcoin more attractive. Per his words, we’re “seeing inflation that we haven’t seen in decades.”
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
Featured image via Pixabay